Glomac near deal to sell complex en bloc

KUALA LUMPUR: Glomac Bhd may ink an en bloc deal soon with an investor looking to buy its integrated commercial complex in Kelana Jaya, which has a gross development value (GDV) of close to RM300 million.

The complex, which comprises a high-rise office tower, an office suite and a mall, will be developed on a 1.45ha land, previously used by Kelana Seafood Centre.

According to group managing director and chief executive officer, Datuk FD Iskandar, Glomac is currently in talks with two potential buyers.

"The investors, a combination of both foreign and locals, are looking at the project in totality," he said yesterday on the sidelines of Invest Malaysia.

Meanwhile, Glomac, a medium-size developer with market capitalisation of around RM550 million, expects to increase the value of existing projects in hand from RM1.4 billion to RM7.4 billion, as it introduces new developments.

Glomac is buying more land in Greater Kuala Lumpur, despite global economic uncertainties and volatilities in the market.

The company is expected to close a deal soon to buy 84ha in Puchong for RM77 million. It is also buying 84ha in Sungai Buloh for RM45 million, to expand its ongoing Bandar Saujana Utama township there.

"Barring any unforeseen circumstances, we hope to launch the project in Puchong by year-end, or early next year. The project will have a GDV of RM2 billion. We expect another RM2 billion from the extension of Bandar Saujana township," Iskandar said.

Iskandar is bullish on the property market, adding that demand for landed properties is still going strong.

"Property is the only commodity, where 97 per cent of the time, it grows in value. People will stop buying only if they don't have confidence in the economy.

"Although the world economic is struggling, property demand, especially for landed properties, is still holding very strong," he said.

On earnings, Iskandar said Glomac will post record net profit this year. For the first nine months of its financial year, net profit rose 32.2 per cent to RM63.5 million compared to the previous corresponding nine-month period.

This surpassed the company's full-year net profit of RM63 million, for fiscal 2011.

By Business Times

RM48bil gross development value for SIC project

GuocoLand MD says the project destined to be a model city of the future

PETALING JAYA: GuocoLand (M) Bhd, the property arm of Hong Leong Group, will be developing the Sepang International City (SIC) with a gross development value of RM48bil.

GuocoLand said in a statement that the proposed project would span about 1,620ha in the southern corridor of Selangor and would be developed over 18 phases.

Full completion of the project is expected to take 15 to 20 years.

“The seafront development will include commercial, business, residential and leisure developments, a hub for institutions of higher learning and a large world-class urban park that will be modelled after the Central Park in New York City,” it said.

GuocoLand managing director Yeow Wai Siaw said the SIC would serve as the catalyst for the growth and future development of Sepang and its surrounding areas.

“SIC is destined to be a model city of the future, not only in Malaysia but in this region. We are very honoured to undertake our second entry point project (EPP) initiative,” he said.

The EPP is part of the new 21 Economic Transformation Programme (ETP) projects announced by Prime Minister Datuk Seri Najib Tun Razak at an ETP progress update briefing earlier this week.

More than 500,000 people are expected to live and work in the SIC.

The project would be supported by direct transport links to the KL International Airport, Kuala Lumpur and other major points in greater Kuala Lumpur and the Klang Valley, it added.

GuocoLand's other projects include Damansara City in Damansara Heights, Commerce One along Old Klang Road, the Emerald master-planned township in Rawang, PJ City Corporate Hub in Petaling Jaya and Amandarii in Kajang.

By The Star

Mah Sing scouting for additional land with potential GDV of RM1.4bil

KUALA LUMPUR: Mah Sing Group Bhd is aiming to acquire additional land with a potential gross development value (GDV) of RM1.4bil this year.

“We have acquired land with GDV of RM3.63bil so far this year, which is about 73% of our target of RM5bil. We have seven months to go, and we definitely have to lock in more land to fuel our long-term growth,” said group managing director and chief executive officer Tan Sri Leong Hoy Kum on the sidelines of the Invest Malaysia 2012 conference.

This year, Mah Sing has acquired land for projects consisting of M Residence 2 in Rawang, Sutera Avenue in Kota Kinabalu, and Southville City which is a planned 412-acre township in Bandar Baru Bangi.

Leong pointed out that Mah Sing currently has 39 residential, commercial and industrial projects across Greater Kuala Lumpur, Johor, Penang and Sabah, with remaining GDV and unbilled sales of RM18.2bil.

The group’s executive director Steven Ng Poh Seng said 70% of the remaining GDV would be from projects in the Klang Valley.

Ng also pointed out that the group has unbilled sales of RM2.48bil as of March 31.

“In acquiring more land, we also make sure we juggle our cash flow well and that the group’s net gearing does not exceed our internal target of 0.5 times,” said Ng.

Ng said the group’s net gearing was still manageable even after the recent RM333.26mil acquisition of 412 acres targeted for a mixed township near Bangi, Selangor.

“We have four to five months to pay for the land. Then we have about RM300mil cash coming in (from delivery of vacant possession of property units). Our gearing is always very manageable because of our quick turnaround business model.” Presently, the group has a land bank of 1,538 acres.

“Even now, we have enough land (to develop) for the next seven to eight years,” said Leong.

As at May 15, the group has achieved property sales of slightly above RM1bil, which is 40% of its 2012 sales target of RM2.5bil.

The bulk of sales were in the Klang Valley (82%), followed by Johor Baru (10%) and the balance from Penang.

Leong said he was “selectively optimistic” regarding the property market this year.

“We need to fit supply to demand. For example, we focus more on mass market products priced below RM1mil such as small serviced residences or link homes,” said Leong.

He also said the group was exploring potential opportunities in the region.

By The Star

Mah Sing expects more foreign buyers

KUALA LUMPUR: Mah Sing Group Bhd, Malaysia's second largest listed developer by sales value in 2011, expects more foreign buyers for its properties, and the driver will be the new 21 projects announced recently, with committed investment of RM20.46 billion.

"These projects will attract more foreigners to invest in Malaysia's real estate sector. By having the right products in good locations, we will be able to attract them," said Mah Sing group managing director cum group CEO, Tan Sri Leong Hoy Kum.

Leong said despite the gloomy global economic picture, Mah Sing experienced strong take-up from foreign property buyers in the last two years, increasing from five per cent to around 10 per cent.

They are mainly buying into projects like M City at Jalan Ampang, Icon City in Petaling Jaya, and Southbay Plaza in Penang, he said yesterday, at the sidelines of Invest Malaysia.

Leong said Mah Sing is setting up offices in Jakarta, the UK and Singapore to woo foreign buyers here. It already has an operating office in China to do that.

On the property market outlook, Leong expects robustness in selected segments. Leong expects stronger demand for properties, especially in gated and guarded schemes, priced above RM1 million, in Greater Kuala Lumpur.

Mah Sing currently has 39 residential, commercial and industrial projects in Greater KL, Johor, Penang and Sabah, with remaining gross development value (GDV) and unbilled sales of RM18.2 billion.

Some 30 per cent of its residential projects are in the RM1 million to RM3 million range, and they comprise mainly semi-detached homes and bungalows.

By Business Times

WCT bids for public infrastructure concessions

KUALA LUMPUR: WCT Bhd, construction, engineering and property outfit, has bid for public infrastructure-related concessions in exchange for land deals from the government, through a public-private partnership (PPP).

Through PPP, a government aims to secure investment and greater efficiency in the delivery of necessary public services in areas such as infrastructure, healthcare, and education by getting the private sector to take them on.

As an incentive, the government may offer concessions, tax breaks, or grants to the relevant private sector players to create a business case.

WCT manager for corporate affairs, Kenny Wong Yik Kae said the land deals will not only lift the group's property development activities, but construction order book as well.

"Getting more concessions especially under the Economic Transformation Programme is part of our way of broadening our construction profile," Wong said yesterday, at the sidelines of Invest Malaysia.

On the type of concessions that WCT has bid for, Wong said they are similar to the integrated complex at KLIA 2 in Sepang, Selangor.

WCT won last year a 25-year concession from Malaysia Airports Holdings Bhd, for privatisation of the construction, development and financing of the integrated complex. The complex will be constructed at a cost of RM530.3 million, funded via a combination of loans and shareholders equity.

By Business Times